Why Hexo Stock Took a 5% Hit Today
Yet again, it's capital-raising time for beleaguered Canadian marijuana company Hexo (NASDAQ: HEXO). On Tuesday, it announced the latest in a string of secondary stock issues, and shares promptly sank, closing the session 5% lower. In some respects, Hexo is lucky it didn't get slammed harder on the news.
Specifically, Hexo said that it has launched an at-the-market program to sell a maximum of $40 million -- or the Canadian dollar equivalent -- worth of its common stock. As is typical for at-the-market issues, the amounts and timing of these sales will be entirely at the discretion of the company. The program will terminate when the full amount of sales has been reached, or on June 10, 2023, whichever comes first.
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Source Fool.com
